Corporation Tax Act 2010 section 1127

"Generally accepted accounting practice" and related expressions

Section 1127 defines the meaning of "generally accepted accounting practice" and several related accounting terms as they are used throughout the Corporation Tax Acts.

• For corporation tax purposes, "generally accepted accounting practice" normally means UK GAAP — the accounting practice applicable to UK company accounts (excluding IAS accounts) that are intended to give a true and fair view — but where a company or entity prepares IAS accounts, it means the accounting practice applicable to those IAS accounts instead.
• "For accounting purposes" means for the purposes of accounts drawn up in accordance with generally accepted accounting practice, and "international accounting standards" has the same meaning as in EU Regulation 1606/2002 on the application of international accounting standards.
• Where an international accounting standard has been adopted by the United Kingdom or the European Commission with modifications, accounts may be prepared using either the modified or unmodified version of the standard, and both are treated as compliant with international accounting standards for corporation tax purposes.
• "UK companies" means companies incorporated or formed under the law of any part of the United Kingdom, and "IAS accounts" means accounts prepared in accordance with international accounting standards.